A Study of Kuznets Relationship in Selected Islamic Countries Emphasizing on the Environmental Efficiency Using DEA Method

Policymaker often uses environmental Kuznets curve to examine the relationship between income and environmental degradation, as a policy instrument for monitoring environmen quality. Economic growth is a major factor in affecting environment. As economy grows more rapidly, it often strains the use of natural resources. On the Other hand, production of low-quality goods increases pollution of all kinds.In this paper, using data envelopment analysis (DEA) and panel data methods, we investigate the relationship between environmental efficiency and national income. Environmental efficiency has been calculated for 16 selected Islamic countries for the period 1990-2007. The findings show that environmental efficiency growth in iran is 1.019. The high environmental efficiency in iran is contributed to higher technological efficiency growth in the country.We analyzed environmental efficiency by using panel data method computed by Malemquist technique. The results show that the relationship between environmental efficiency and income follows the pattern of Kuznets curve.